How did the economic crisis hinder the completion of the Intempo skyscraper?

Introduction

Peter Andrushevich, who is at the helm of the company Costa Real located in Spain, shares his vision regarding the famous building in Benidorm. He discusses its past, current state, and potential future prospects. Benidorm, known for its skyscrapers, continues to actively engage in high-rise construction, as local authorities do not impose height restrictions, allowing construction companies to develop ambitious projects.

Intempo Project

In 2006, the idea was presented to construct unique high-rise buildings standing 200 meters tall, featuring an elegant dome shaped like a golden cone. This project caused a stir even among market experts.

The project that received the nameIntempoIt was designed by architects from Alicante and Benidorm, a well-known studio.Peresa-GuerraEngineers spent an entire year performing calculations for feasible designs of such scale, which highlights the strictest quality requirements.

Construction work

Construction work began in 2007, and the technologies used became unique for Spain. To create a strong foundation, the following was used:

• 144 piles, each exceeding 12 meters in length and about 1.5 meters in diameter.
• More than 4,000 cubic meters of concrete for forming the foundation slab of one of the skyscrapers.
• Every five minutes, a new concrete truck arrived at the construction site, highlighting the scale of the project — over 1,300 trucks were involved in total.

Construction process

The process of constructing the Intempo framework lasted three and a half years, during which 200-meter tall cranes were used. In 2011, both skyscrapers were connected at the top, marking the completion of work on the dome, which became known as the "diamond."

This original construction element is supported by two parallel metal structures, each 20 meters long and weighing 110 tons. They were pre-welded on the ground and then lifted entirely to a height of 143 meters.

Completion of construction

Architects and engineers completed the construction of the load-bearing walls and framework on July 15, 2012, although the work was delayed by 10 months for various reasons. To mark the completion of the construction, a flag of Spain was raised on the building that day, which is also part of the national construction traditions.

Economic realities

By that time, Spain was experiencing one of the deepest economic crises the country had ever known. As for the funding of this grand project, it all started quite calmly.

DeveloperJosé Ignacio de la SernaHe founded the company Olga Urbana, which is said to be named after his girlfriend — a well-known lawyer from Benidorm. The plot of land where the construction took place was purchased for54.5 million eurosand additionally the bankCaixa Galiciahighlighted93 million eurosfor the implementation of the project.

The person behind the project

For those familiar with José Ignacio, his sober approach to business and optimism make him well-known as an experienced entrepreneur with excellent administrative skills. This successful businessman, originally from northern Spain, previously worked on the implementation of a skyscraper project.145 metersunder the title "Neguri".

This data highlights his professionalism and ambitious attitude, as he continues to play an important role in the development of architecture and the construction industry in Benidorm, where high-rise buildings shape the future of the city.

Introduction

Due to the economic difficulties that have engulfed the country, the project, envisioned as an outstanding achievement by architect de la Serna, is now under threat. Initially, the implementation of this construction idea was going quite well, with about 40% of the apartments sold in the early stages. However, the situation changed in 2009, when buyer interest noticeably declined.

The collapse of the general contractor

In the same year, the main contracting company also went bankrupt, which forced a change in the construction organization. This was noticeable even in the color contrast of the concrete on the 11th floor, as a new supplier of building materials was brought in.

Continuation of construction

Despite the challenges that arose, construction continued for four and a half years. Funding was provided both from the company's own resources and through loans from banks.

• The continuation of the work turned out to be beneficial for all parties involved in the project.
• Admitting failure was extremely undesirable.

Financial difficulties

Nevertheless, between 2010 and 2012, the developer faced significant financial problems and began to delay payments to its subcontractors. During this time, Caixa Galicia, a regional savings organization, was rapidly approaching bankruptcy and was acquired in 2010 by a larger financial institution after a technical default, which soon also encountered serious issues.

Critical situation with funding

The problems with financing construction work have become even more acute with the attention drawn by the semi-state bank Sareb. This institution was created by the Spanish government specifically to manage toxic loans and non-performing assets.

• Against the backdrop of increasing tension and pressure, the project participants became more and more anxious with each passing day.
• In 2012, the first lawsuit was filed by a buyer seeking a refund of 80,000 euros for an apartment.

Customer issues

Although they couldn't be called deceived investors, not all of them acted entirely in good faith. Even if the construction had been completed, some buyers would have found it extremely difficult to meet their financial obligations.

• During the first purchase, they only paid about 20% of the price that was relevant before the crisis began.
• With the market decline, property prices have significantly decreased.
• Financial institutions have stopped offering attractive mortgage loans to individuals.

New lawsuits and bankruptcy

Thus, the completion of the project could lead to many buyers being unable to pay the remaining 80%. Under such circumstances, it became easier to file a lawsuit against the developer based on other formal reasons, such as delays in fulfilling obligations, demanding the return of the initial deposit.

This initiated the bankruptcy process for the company Olga Urbana and the legal proceedings against the project management, which lasted quite a long time.

Completion of construction

By 2013, the building was 93% complete, and only a little was left, but the final stage was never reached. At the time of the complete suspension of work, the Intempo project was in its final phase: the company had about 2 million euros left in its accounts, while preliminary estimates indicated that around 6 million euros were needed to complete the remaining work.

A strange and unpleasant situation has arisen in the real estate sector, reminiscent of the fable of the "swan, the crab, and the pike." The interests of financiers, city dwellers, and builders have become so divergent that it has led to a temporary halt of a unique construction project. Unfortunately, in 2015, the main owner, De la Serna, passed away after a long battle with cancer and had stepped back from managing the Intempo company in recent years.

Current events in the real estate market

As of today, current events in the foreignreal estate market can be tracked in a specialized Telegram channel. Urban legends about Intempo, shining like gold in the sun of Benidorm, continue to spark interest among people. This building is visible from afar, but access for ordinary citizens is restricted, as security does not allow anyone inside. Nevertheless, for many, taking a photo against the backdrop of the stylish "diamond cone" has become a true goal.

Myths and legends about the Intempo building

This long-term construction, which has been in the same place for a whole decade, attracts a lot of attention and gives rise to numerous myths and legends. Many of these rumors have become true urban stories. One of the most well-known and frequently discussed is the myth that the building lacks an elevator. There is a belief that the Spanish architects, while developing the project, completely forgot about the elevator shaft — this is a humorous myth that brings a smile to professionals in the field of architecture and construction.

Refutation of rumors about the elevator

It is important to note that the rumor about a non-existent elevator is completely untrue. Nevertheless, the impact of this legend was so significant that in 2013, the state bank Sareb, along with architects, decided to organize a full-fledged PR campaign to debunk it. How did this story come about? It all started with the fact that the first advertising brochures depicted the roof of the building as flat, which led to a misunderstanding. The towers, where elevators and their mechanisms are usually located, were not visible. The developers left space under the roof, believing that it would be sufficient.

Architectures and elevators in Intempo

The architects, of course, took into account the need for installing elevators and their shafts. Otherwise, the project would not have received approval from either the architectural association or the local authorities of Benidorm. As a result, Intempo has several elevators installed — six, not counting one in the "diamond." However, initially, the roof was designed to be flat, and during the construction phase, the project underwent changes.

• The Spanish elevator supplier has been replaced by the world-renowned company KONE.
• KONE presented its requirements for the technical specifications, which forced the architects to revise the drawings.

As a result, elevator shafts in the form of distinctive towers were added to the flat roof of the building. This seemingly minor change in the design is nonetheless important to consider in the context of the conditions under which the construction was completed.

Media attention

In July 2013, the Spanish newspaper El Pais published an article about Intempo, where the author casually noted that the project "did not include space for an elevator." This was specifically referring to those towers that were not visible in the initial promotional materials.

The impact of a phrase on the reputation of a residential complex

A small piece of information had a significant impact on the image of the residential complex. In August 2013, the well-known American internet resource Gizmodo, specializing in tech news, published an inaccurate report claiming that the building lacked elevators, which led to a series of "lost in translation" issues. Soon, this false information was picked up by Spanish and other international media, mistakenly considering it a reliable source. That same year, the entire architectural team that developed the project left the company, but their departure was not due to the elevators; it was related to conflicts over payment for their professional services.

Confirmation of stereotypes

This situation brought to mind the saying "where there's smoke, there's fire." In reality, the high-speed elevators in Intempo were already operational in 2013, and in 2019, a new investor decided to install the latest models. Now, the elevators in Intempo operate using artificial intelligence technologies, making them the fastest in Spain. You can see for yourself by taking a ride to the 46th floor in just a few seconds!

False rumors about Intempo

Some tour guides in Benidorm express the opinion that Intempo is set to be demolished, citing non-existent decisions from city authorities or court orders. However, this information is not accurate, although its origins can be understood. In Benidorm, there are indeed the twin towers Gemelos 28, which are under threat of demolition. Nevertheless, they have nothing to do with Intempo and are located a considerable distance apart.

The fate of Gemelos 28

The Gemelos 28 buildings were constructed in 2005 with clear violations of coastal protection laws and are located too close to the sea. The issue reached the Supreme Court of Spain, which ruled for their demolition and ordered the Valencia regional authorities to compensate the apartment owners.

A unique event in Benidorm

That same weekend, when the seventh BASE jumping competition took place at the Bali hotel in Benidorm, an astonishing event occurred. Brave extreme sports enthusiasts jumped from the tallest skyscraper on the coast, and one of them, with incredible agility, managed to glide a parachute between two prominent towers.

All participants of these daring feats returned without incident, but after this incident, the site became under constant surveillance, and now it has become quite difficult for thrill-seekers to access the Intempo area.

Financial rumors about buyers

Regarding the rumors about the financial difficulties of the first buyers, there is an opinion that if you decide to purchase an apartment in Intempo, you may be approached by apartment owners who made their investments back in 2008, demanding the return of their funds. This could turn into a lawsuit or other legal actions.

Based on rumors, it is assumed that old buyers have encountered unscrupulous actions by the developer. However, this is far from the true reality. In fact, the Intempo project is not connected in any way to debts, credit obligations, or legal disputes.

The history of the developer

For those interested in history, it is worth noting that the developer Olga Urbana had financial obligations to Caixa Galicia, which acted as a savings bank. There was also an advance payment from clients who purchased apartments.

The debt to the bank was bought out by a state institution called Sareb, commonly referred to as the "bad bank." This organization, along with the interbank fund, was tasked with the responsibility of reimbursing the previous buyers.

Resolution of debt issues

In 2019, all issues related to old debts were finally resolved. It should be emphasized that the claims of the affected parties were not directly related to the building itself, but rather to the Spanish bank. The building has been freed from debt obligations and legal disputes.

For those who are still unsure, there is an option to request an extract from the property register to confirm the absence of any debts.

Status of the Intempo construction

As for the Intempo construction itself, the semi-state institution Sareb became the owner of this property as a result of the developer's debt obligations, according to a court ruling. During the bankruptcy process, both the developer Olga Urbana and many contractors went bankrupt. Shortly after that, during a tense period of economic instability in Spain, when the crisis of the 2010s began, this case became just one of many similar episodes.

Negotiations for sale

From 2015 to 2017, the "bad bank" was in negotiations regarding the sale of Intempo with investors from various countries, aiming to sell this iconic property for almost half its value. Interest in purchasing the tallest residential building in Europe came from Arab, American, and Spanish investors. Ultimately, the London-based investment fund SVP offered the most favorable terms.

Purchase and condition of the building

This investor paid 60 million euros for a building that already had walls, windows, and doors installed, as well as the necessary utilities—electricity and water supply. The elevators and sewage system were functioning properly, and some elements, such as the garbage chute, were also operational.

According to the old project conditions, it was necessary to complete the landscaping of the area, carry out cosmetic work, install a pool, and resolve a few other minor details. All of these tasks could be completed within a year, no longer.

Change of project concept

Changes in the project's concept have become a significant milestone for the new building. The investors did not simply decide to complete the construction of Intempo; instead, they completely transformed its vision. Now, instead of a typical residential complex, a unique sky resort is being created here—a living space with five-star hotel services, designed in an American style. This is quite justified, considering that since 2006, perceptions of luxury real estate have changed, and service standards have increased. It is also worth noting that in recent years, a new segment has emerged in Spanish resorts—apartment rentals for tourists. An interesting fact is that during the design of Intempo, international platforms such as Airbnb, Booking, and TripAdvisor did not yet exist.

Update of the concept

As of today, the update of the concept covers many aspects. First of all, investors have focused on the public areas of the complex. An open pool designed in a beach style, covering an area of about 900 square meters, is planned for the first floor, which will be accessible to both adults and children. A comfortable relaxation area of 4,300 square meters will be organized around it.

• A restaurant exclusively for the residents of the complex will open next to the pool.
• There will be a children's playground with an area of 1000 square meters.

Spa center and services for residents

On the top floors of the building — the 46th and 47th — a spa center will be created featuring a gym, an indoor pool with stunning panoramic views, a sky bar, a lounge, and a sunbathing area. In the spacious lobby, which covers an area of 600 square meters, residents will receive concierge services. Among the services offered will be:

• Wallet service
• Home delivery of groceries
• Assistance with other household issues that will be provided by a special service.

Such a level of service will be a real breakthrough for Spain.At the same time, the cost of living will remain quite reasonable. According to investors' calculations, the rental price for a condominium will range from €145 to €185 per month for a room.

Safety and privacy of residents

The safety and privacy of residents will become top priorities.The building will be closed to outsiders, and access to the sky bar, spa center, and restaurant will be restricted to apartment owners and their guests only. The rental process will be organized exclusively through the condominium, ensuring a high level of control.

Sale of apartments

As for the apartments themselves and the famous property known as the "diamond," the investor has decided not to handle their sale independently. Several authorized real estate companies were selected after a competition. Sales of the properties began in July 2019. The investment fund intends to implement the latest technologies for the renovation of the building. The license for the redevelopment has already been obtained, and the general contractor has been appointed. The completion of the work is scheduled for the third quarter of 2020.

Tower layout

Each of the two towers will have three apartments on each floor, starting from the second and ending on the 37th. The initial prices for the housing range from €245,000 to €497,000, depending on the floor. The most elite 32 apartments will be located in the "diamond," with areas ranging from 172 to 228 square meters.Owners will be able to combine two units or purchase an entire floor.

Introduction

In conclusion of my story about the fate of one of the most ambitious architectural projects in Spain, it is impossible not to mention the emotions and hopes that were invested in the creation of the Intempo skyscraper. This unique status symbol, which has become a representation of the aspiration for heights not only in a physical but also in a financial sense, serves as a vivid example of the complexities of the construction sector during times of crisis.

Study of the project

The creation of Intempo became a practical lesson for many architects, builders, and investors. Despite initially successful sales and impressive technologies, such as the unique framework and widespread use of modern materials, the unexpected escalation of financial problems and the economic crisis in the country became a black mark for the project. We witnessed how dreams and ambitions collided with the harsh reality of financial risks.

Intempo symbolism

Despite its nearly completed appearance and significance for urban architecture, Intempo served as a kind of mirror for the entire construction industry in Spain, reflecting not only grand plans but also the shattering of hopes, as many investors and buyers found themselves in a difficult situation against the backdrop of the crisis.

Conclusions and lessons

Thus, Intempo has become not just a building, but an important monument of time that makes us reflect on the twists of fate in the world of investments, construction ambitions, and human decisions. I hope that in the future, when the situation improves, this giant can once again become a symbol of success and a new era for Benidorm and all of Spain.

Key points

• Emotions and hopeswere invested in the project.
• Faced with financial difficulties, the project became a symbol of crises.
• Intempo reflects the passions and pains of the construction industry in Spain.
• I hope for Intempo's success in the future when the situation normalizes.

Conclusion

It's important to remember that even the boldest projects can face insurmountable obstacles, but history shows that every crisis can provide lessons for future achievements.